Republic of the Philippines

Department of Labor and Employment

National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Region VII, Central Visayas

WAGE ORDER NO. ROVII-14

ESTABLISHING NEW MINIMUM WAGE RATES

WHEREAS, Republic Act 6727 otherwise known as the Wage Rationalization Act of 1989 mandated the
Regional Tripartite Wages and Productivity Boards to determine and fix the minimum wages in their respective
Regions;

WHEREAS, in the performance of the abovecited mandate, the Board issued Wage Order No. ROVII-13
which took effect on November 11, 2007;

WHEREAS, on February 1, 2008 the Board received a Petition seeking for an across-the-board wage increase
in the Region in the amount of One Hundred Fifty Pesos and Forty-five centavos (P 150.45) per day, filed by
Alliance of Progressive Labor (APL), Nagkakaisang Lakas ng Mangagawa – Katipunan, Shemberg Employees
Independent Union (SEIU-NUWHRAIN-APL), Employees Association of Robinsons Supermarket (EARS),
Nagkahiusang Mamumuo sa LBF Hardware (NAMA-LBF), Kan-irag Employees Labor Organization (KELO),
Bank of the Philippine Islands Employees Independent Union (BPI-EIU), Grand Majestic Convention Center
Employees Union (GMCC-EU) and Public Interest Advocacy and Litigation Office, (PIALO, INC.);

WHEREAS, on April 22, 2008 the Board received another petition for an across-the-board wage increase in
the amount of One Hundred Fifty Pesos (P 150.00) per day, filed by the Trade Union Congress of the Philippines
(TUCP);

WHEREAS, both petitions were filed less than twelve (12) months from the time Wage Order No. ROVII-13
took effect;

WHEREAS, relative thereto, Section 3, Rule IV of NWPC Guidelines No. 01 Series of 2007, Amended Rules
of Procedures on Minimum Wage Fixing, provide: “Any Wage Order issued by the Board may not be disturbed
for a period of twelve (12) months from its effectivity, and no petition for wage increase shall be entertained
within the said period. In the event, however, that supervening conditions, such as extraordinary increase in
prices of petroleum products and basic goods/services, demand a review of the minimum wage rates as
determined by the Board and confirmed by Commission, the Board shall proceed to exercise its wage fixing
function even before the expiration of the said period.;

WHEREAS, on April 23, 2008 the Board in its Resolution No. 01 series of 2008 declared the existence of
supervening event in the Region and subsequently confirmed by the National Wages and Productivity
Commission in its Resolution No. 01, Series of 2008, dated April 24, 2008;

NOW, THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, the
Regional Tripartite Wages and Productivity Board, Region VII, hereby issues this Wage Order:

Section 1. AMOUNT OF INCREASE. Upon effectivity of this Wage Order, the daily minimum wage
rates of all private sector workers and employees in all sectors in the region shall be increased by Seventeen Pesos
(P17.00) per day.

Section 2. COVERAGE. The adjustments prescribed under this Order shall apply to all minimum wage
private sector workers and employees in the region, regardless of their position, designation or status of
employment and irrespective of the method by which their wages are paid.

Not covered from the provisions of this order are household or domestic helpers; persons in the personal
service of another, including family drivers; and workers of registered Barangay Micro Business Enterprises with
valid Certificates of Authority.

Section 3. BASIS OF MINIMUM WAGE. The minimum wage rates prescribed under this Order shall be
for the normal working hours, which shall not exceed eight (8) hours work a day.

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 Section 4. WORKERS PAID BY RESULTS. All workers paid by results, including those who are paid
on piecework, “takay” or task basis, shall be entitled to receive not less than the prescribed minimum wage
increase per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

Section 5. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices and learners shall
in no case be less than seventy-five percent (75%) of the applicable minimum wage rates prescribed in this Order.

All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order
shall be considered automatically modified insofar as their wage clauses are concerned to reflect the new
prescribed wage rates.

All qualified handicapped workers shall receive the full amount of increase in this Order pursuant to R.A.
6727.

Section 6. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case of private

educational institutions, the share of covered workers and employees in the increase in tuition fees for School
Year 2008-2009 shall be considered as compliance with the increase prescribed herein. However, payment of any
shortfall in the wage increase set forth herein shall be covered starting School Year 2009-2010.

Private educational institutions which have not increased their tuition fees for the School Year 2008-2009
may defer compliance with the increase prescribed herein until the beginning of School Year 2009-2010.

In any case, private educational institutions shall implement the increase herein starting School Year 2009-
2010.

Section 7. APPLICATION TO CONTRACTORS. In the case of contracts for construction projects and
for security, janitorial and similar services, the prescribed increases in the wage rates of the workers shall be borne
by the principals or clients of the construction/service contractors, and the contract shall be deemed amended
accordingly. In the event, however, that the principal or client fails to pay the prescribed increase or new
minimum wage rates, the construction/service contractor shall be jointly and severally liable with his principal or
client.

Section 8. EXEMPTION. No exemption from compliance with this Wage Order shall be allowed.

Section 9. PRODUCTIVITY–BASED WAGES. In order to sustain rising level of wages and enhance
competitiveness, businesses are strongly encouraged to adopt productivity improvement schemes, such as time
and motion studies, good housekeeping, quality circles, labor-management cooperation, as well as implement gain
sharing programs. Accordingly, the Regional Board shall provide the necessary studies and technical assistance
pursuant to RA 6971, the Productivity Incentives Act of 1990.

Section 10. APPEAL TO THE COMMISSION. Any party aggrieved by this Wage Order may file a
verified appeal with the Commission through the Board within ten (10) calendar days from the publication of this
Order.

Section 11. EFFECT OF FILING AN APPEAL. The filing of the appeal does not operate to stay the
Order unless the party appealing such Order shall file with the Commission an undertaking with a surety or
sureties satisfactory to the Commission for payment of the corresponding increase to employees affected by the
Order in the event such Order is affirmed.

Section 12. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the increases in
the wage rates under this Order results in distortion of the wage structure within an establishment, the same shall
be corrected in accordance with the procedure provided for under Art. 124 of the Labor Code as amended.

Section 13. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this Order
shall be filed with the Regional Office of the Department of Labor and Employment (DOLE) and shall be the
subject of enforcement proceedings under Article 128 of the Labor Code, as amended, without prejudice to
criminal prosecution, which may be undertaken against those who fail to comply.

Section 14. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be construed to reduce any
existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders
and/or under any contract or agreement between the workers and employers.

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 Section 15. PENAL PROVISION. Any person, corporation, trust or firm, partnership, association or
entity which refuses or fails to pay the prescribed wage increase/allowance/rates in accordance with this Order
shall be subject to the penal provisions under RA 6727, as amended by RA 8188.

Section 16. PROHIBITION AGAINST INJUCTION. No preliminary or permanent injunction or

temporary restraining order may be issued by any court, tribunal or other entity against any proceedings before
the Board.

Section 17. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in particular
firms or enterprises of industries from bargaining for higher wages with their respective employers.

Section 18. REPORTING REQUIREMENT. Any person, company, corporation, partnership or any
entity engaged in business shall submit a verified itemized listing of their labor component to the Board not later
than January 31, 2009 and every year thereafter in accordance with the form prescribed by the Commission.

Section 19. REPEALING CLAUSE. All orders, issuances, rules and regulations, or parts thereof
inconsistent with the provision of this Wage Order are hereby repealed, amended or modified accordingly.

Section 20. SEPARABILITY CLAUSE. If, for any reason, any section or provision of this Order is
declared unconstitutional or illegal, the other provisions or parts shall remain valid.

Section 21. IMPLEMENTING RULES. The Board shall prepare the necessary rules to implement this
Order subject to approval of the Secretary of Labor and Employment.

Section 22. EFFECTIVITY. This Order shall take effect fifteen (15) days after its publication in a
newspaper of general circulation in the region.

CEBU CITY, PHILIPPINES, May 22, 2008.

APPROVED:

SGD. HIDELITO S. PASCUAL SGD. MARIANITO B. VENTURA

Member, Employer’s Representative Member, Labor Representative

I dissent as to the amount granted. It is not enough to

maintain a descent standard of living.
SGD. CHARLES M. STREEGAN SGD. JOSE A. BOQUECOSA JR.
Member, Employer’s Representative Member, Labor Representative

SGD. MARLENE CA. P. RODRIGUEZ SGD. ASTERIA C. CABERTE

Vice Chairperson Vice Chairperson

SGD. ELIAS A. CAYANONG

Chairperson

RTWPB7/ERS ‘08

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 Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Region VII, Central Visayas

RULES IMPLEMENTING WAGE ORDER NO. ROVII-14

Pursuant to Section 6, Rule IV of the NWPC Guidelines No. 1 Series of 2008, Amended Rules
of Procedure on Minimum Wage Fixing and Section 21 of Wage Order No. ROVII-14, the following
rules are hereby issued for guidance and compliance by all concerned.

Rule I – General Provisions

Section 1. This Rules shall be known as the “Rules Implementing Wage Order No. ROVII-14”.

Section 2. Definition of Terms. As used in this rules:

a) “ORDER” means Wage Order No. ROVII-14;

b) “COMMISSION” refers to the National Wages and Productivity Commission;

c) “BOARD” means the Regional Tripartite Wages and Productivity Board, Region VII;

d) “DEPARTMENT” means the Department of Labor and Employment;

e) “REGION VII” is the geographic area in Central Visayas covering the Provinces of Cebu, Bohol, Negros
Oriental and Siquijor and its component cities;

f) “AGRICULTURE” refers to farming in all its branches and among others, include the cultivation and tillage
of the soil, production, cultivation, growing and harvesting of any agricultural and horticultural commodities,
dairying, raising of livestock or poultry, the culture of fish and other aquatic products in farms or ponds, and
any activities performed by a farmer or on a farm as an incident to or in conjunction with such farming
operations, but does not include the manufacturing and/or processing of sugar, coconut, abaca, tobacco,
pineapple, aquatic or other farm products;

g) “BARANGAY MICRO-BUSINESS ENTERPRISE (BMBE)” refers to any registered business entity or

enterprise granted a Certificate of Authority pursuant to Republic Act 9178;

h) “CLASS A” refers to the Cities of Carcar, Cebu, Danao, Lapulapu, Mandaue, Naga and Talisay and the
Municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando or (expanded
Metro Cebu);

i) “CLASS B” refers to the Cities of Toledo and Bogo and the rest of the municipalities in the Province of
Cebu except the municipalities in the Islands of Bantayan and Camotes;

j) “CLASS C” refers to the cities and municipalities in the Provinces of Bohol and Negros Oriental;

k) “CLASS D” refers to the municipalities in the Province of Siquijor and municipalities in the Islands of
Bantayan and Camotes.

Rule II– Wage Increase

Section 1. Amount and Effectivity of Increase. The daily minimum wage rates upon effectivity of this Wage
Order, for all covered private workers and employees among all sectors all over the region shall be increased by
Seventeen Pesos (P 17.00).

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 Section 2. Coverage. a). The wage increase prescribed in the Order shall apply to all private sector minimum
wage workers and employees in the Region whether agricultural or non-agricultural, regardless of their position,
designation, or status and irrespective of the method by which their wages are paid.
b). Not covered from the provisions of the Order are household or domestic helpers, workers employed in the personal service of another, including family
drivers and workers of duly registered Barangay Micro-Business Enterprises with Certificates of Authority.

c). Private sector workers receiving more than the minimum wage prescribed herein are not covered by the wage increase prescribed in the Order in line with
the Commission’s policy on safety net wage fixing, except to correct distortions.

Section 3. New Minimum Wage Rates. a). The new minimum wage rate in the region for each area classification including agriculture sugar and sugar mills
shall be as follows:

Area Non Agriculture

Sugar
Classi- Agricul- Non
Sugar Mills
fication ture sugar
Class A 267.00 249.00
Class B 247.00 232.00
217.00 237.00
Class C 237.00 217.00
Class D 222.00 202.00
b). Wages of all workers and employees whose rates are less than the prescribed minimum wage rates pursuant to Sections 1 and 2
of the Order shall be adjusted accordingly.

Section 4. Basis of Minimum Wage Rates. The minimum wage rates prescribed herein shall be for the normal working hours, which
shall not exceed eight (8) hours work per day.

Section 5. Application to Private Educational Institutions. a). In the case of private educational institutions, the
share of covered workers and employee in the increase in tuition fees for School Year 2008-2009 shall be
considered as compliance with the increase prescribed herein. However, payment of any shortfall in the wage
increase set forth herein shall be covered starting School Year 2009-2010.

b). Private educational institutions which have not increased its tuition fees for School Year 2008-2009 may
defer compliance with the increase prescribed herein until the beginning of School Year 2009-2010.

c). In any case private educational institutions shall implement the increase herein starting School Year 2009-
2010.

Section 6. Application to Contractors. In the case of contracts for construction projects and for security, janitorial services, the
prescribed wage increases shall be borne by the principals or clients of the construction/service contractors and the contract shall be
deemed amended accordingly. In the event, however, that the principal or client fails to pay the prescribed wage rates, the
construction/service contractor shall be jointly and severally liable with his principal or client.

Section 7. Workers Paid by Results. a). All workers paid by results, including those who are paid on piecework, takay, pakyaw, or
task basis, shall receive not less than the applicable minimum wage rates prescribed under the Order for the normal working hours which
shall not exceed eight (8) hours work a day, or a proportion thereof for work of less than the normal working hours.

b). The wage rates of workers who are paid by results shall continue to be established in accordance with Article 101 of the Labor
Code, as amended and its implementing rules and regulations.

c). The adjusted minimum wage rates for workers paid by results shall be computed in accordance with the following steps:

1. Amount of increase in AMW*

------------------------------------- X 100 = Percent increase;
Previous AMW

2. Existing rate/piece X Percent increase = Increase in rate/piece;

3. Existing rate/piece + Increase in rate/piece = Adjusted rate/piece

* Where AMW is the applicable minimum wage rate.

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 Section 8. Wages of Special Groups of Workers. a) Wages of apprentices and learners shall in no case be less than seventy-five
percent (75%) of the applicable minimum wage rates prescribed in the Order.

b). All recognized learnership and apprenticeship agreements entered into before the effectivity of the Order shall be considered as
automatically modified insofar as their wage clauses are concerned to reflect the adjustments prescribed under the Order.

c). All qualified handicapped workers shall receive the full amount of increase in this Order pursuant to R.A. 6727.

Section 9. Suggested Formulae in Determining the Equivalent Monthly Regional Minimum Wage Rates. Without prejudice to
existing company practices, agreements or policies, the following computation of the Estimated Equivalent Monthly Rate (EEMR) of
employees in the private sector because of the National Heroes’ Day which is now observed on the Last Monday of August, shall
accordingly use the following formulae in the determining the EEMR of the employees:

a. For those who are required to work everyday including Sundays or rest days, special days and regular holidays, the previous
factor of 392.8 will now be 392.5, thus:

Applicable Daily Wage Rate (ADR) X 392.5/12 months = EEMR;

where 392.5 days/year is equal to:

299 Ordinary working days

22 Regular holidays
67.6 52 rest days X 130%
3.9 3 special days X 130%
392.5 Total number of days/year.

b. For those who do not work and are not considered paid on Sundays or rest days, the previous factor of 314 will now be 313,
thus:

Applicable Daily Wage Rate (ADR) X 313/12 months = EEMR;

where 313 days/year is equal to:

299 ordinary working days

11 regular holidays
3 special days
313 Total number of days/year.

c. For those who do not work and are not considered paid on Saturdays and Sundays or rest days, the previous factor of 262
will now be 261, thus:

Applicable Daily Wage Rate (ADR) X 261/12 months = EEMR;

where 261 days/year is equal to:

247 ordinary working days

11 regular holidays
3 special days
261 Total number of days/year.

As to 365 days/year factor, although there is no effect as to the payment in the monthly salary of
employees as they are paid all days of the year, its breakdown will be modified as follows:

Applicable Daily Wage Rate (ADR) X 365/12 months = EEMR

where 365 days/year is equal to:

299 ordinary working days
52 Sundays/rest days
11 regular holidays
3 special days
365 Total number of days/year.

Section 10. Mobile and Branch Workers. a) The prescribed minimum wage rates of workers, who by nature of their work have to
travel, shall be those applicable in the domicile or head office of the employer.

b) The minimum wage rates of workers working in branches or agencies of establishments within the Region shall be those
applicable in the place where they are stationed.
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 Section 11. Transfer of Personnel. The transfer of personnel to areas outside the Region shall not be a valid ground for the
reduction of the wage rates being enjoyed by the workers prior to such transfer. The workers transferred to other regions with higher wage
rates shall be entitled to the minimum wage rate applicable therein.

Section 12. Appeal to the Commission. Any party aggrieved by the Wage Order may file an appeal with the Commission through the
Board within ten (10) calendar days from the publication of the Order. The Commission shall decide the appeal within sixty (60) calendar
days from the date of filing. The appeal shall be accompanied by a memorandum of appeal which shall state the grounds relied upon and
the arguments in support of the appeal.

Section 13. Effect of Appeal. The filing of the appeal does not operate to stay the Order unless the party appealing such Order shall
file with the Commission an undertaking with a surety or sureties satisfactory to the Commission for payment to employees affected by the
Order of the corresponding increase, in the event such Order is affirmed.

Rule III – Exemption

Section 1. No Exemption. No exemption from compliance with this Wage Order shall be allowed.

Rule IV - Special Provisions

Section 1. Effect on Existing Wage Structure. Should any dispute arise as a result of wage distortion, the employer and the union
shall negotiate to correct the distortions through the grievance procedure under their collective bargaining agreement, and if it remains
unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, the voluntary arbitrator shall decide such
dispute or panel of voluntary arbitrators within ten (10) calendar days from the time said dispute shall have been referred to voluntary
arbitration.

In cases where there are no collective bargaining agreements or recognized labor unions, the employers and workers shall endeavor
to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and if it
remains unresolved after ten (10) calendar days of conciliation, the same shall be referred to the appropriate branch of the National Labor
Relations Commission (NLRC). The NLRC shall conduct continuous hearings and decide the dispute within twenty (20) calendar days from
the time said dispute is submitted for compulsory arbitration.

The pendency of a dispute arising from wage distortion shall not in any way delay the applicability of any increase prescribed in the
Order.

Section 2. Complaints for Non-Compliance. Complaints for non-compliance with the Order shall be filed with the Regional Office of
the Department having jurisdiction over the workplace and shall be the subject of enforcement proceedings under Articles 128 and 129 of
the Labor Code, as amended.

Section 3. Conduct of Inspection by the Department. The Department shall conduct inspections of establishments, as often as
necessary, to determine whether the workers are paid the prescribed wage rates and other benefits granted by law or any Wage Order.

In the conduct of inspection in unionized companies, Department inspectors shall always be accompanied by the president or other
responsible officer of the recognized bargaining unit or of any interested union. In the case of non-unionized establishments, a worker
representing the workers in the said company will accompany the inspector.

The workers’ representative shall have the right to submit his own findings to the Department and to testify on the same if he does not
concur with the findings of the labor inspector.

Section 4. Non-diminution of Benefits. Nothing in the Order and in this Rule shall be construed to reduce any existing wage rates,
allowances and benefits of any form under existing laws, decrees, issuances, executive orders, and/or under any contract or agreement
between the workers and the employers.

Section 5. Productivity-Based Wages. In order to sustain rising level of wages and enhance competitiveness, businesses are
strongly encouraged to adopt productivity improvement schemes, such as time and motion studies, good housekeeping, quality circles,
labor-management cooperation, as well as implement gain sharing programs. Accordingly, the Regional Board shall provide the
necessary studies and technical assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.

Section 6. Penal Provision. Any entity that refuses or fails to pay any of the prescribed increases or adjustments in the wage rates
made in accordance with this Order shall be punished in accordance with the provisions of Sec. 12, Art 127 of RA 6727 as amended by RA
8188, which provides as follows:

“Sec. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increases or adjustments
in the wage rates made in accordance with this Act shall be punished by a fine not less than Twenty-five thousand pesos (P25.000) nor more than One hundred
thousand pesos (P100.000) or imprisonment of not less than two (2) years nor more than four (4) years or both such fine and imprisonment at the discretion of
the court: Provided, that any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.

The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided. That payment of indemnity shall not
absolve the employer from the criminal liability imposable under this Act.

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 If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the
entity's responsible officers including but not limited to the president, vice president, chief executive officer, general manager, managing director or partner.”

Section 7. Prohibition Against Injunction. No preliminary or permanent injunction or temporary restraining order may be issued by
any court, tribunal or other entity against any proceedings before the Commission or Boards.

Section 8. Freedom to Bargain. The Order shall not be construed to prevent workers in particular firms or enterprises of industries
from bargaining for higher wages and flexible working arrangements with their respective employers.

Section 9. Reporting Requirements. Any person, company, corporation, partnership or any entity engaged in business shall submit
a verified itemized listing of their labor component to the Board not later than January 31, 2009 and every year thereafter in accordance
with the form prescribed by the Commission.

Section 10. Repealing Clause. All orders, issuances, rules and regulations on wages, or parts thereof inconsistent with the
provisions of the Wage Order and this Rules are hereby repealed, amended or modified accordingly.

Section 11. Separability Clause. If any provision or part of the Order and this Rule, or the application thereof to any person or
circumstance is held invalid or unconstitutional, the remainder of the Order and this Rules or the application of such provision or part
thereof to other persons or circumstances shall not be affected thereby.

Section 12. Effectivity of Rules. This rule shall take effect on June 16 , 2008.

Done in the City of Cebu, Philippines, this 26th day of May 2008.

APPROVED:

SGD. HIDELITO S. PASCUAL SGD. MARIANITO B. VENTURA

Member, Employer Sector Member, Labor Sector

SGD. CHARLES M. STREEGAN SGD. JOSE A. BOQUECOSA JR.

Member, Employer Sector Member, Labor Sector

SGD. MARLENE CA. P. RODRIGUEZ SGD. ASTERIA C. CABERTE

Vice Chairperson Vice Chairperson

SGD. ELIAS A. CAYANONG

Chairperson

Approved this 5th day June, 2008.

SGD. MARIANITO D. ROQUE

Secretary, Department of Labor and Employment
Chairman, National Wages and Productivity Commission

RTWPB7/ERS ‘08